"Our first quarter billings exceeded the high end of our guidance range, driven by demand for our threat intelligence, cloud-based Email Threat Protection, and FireEye as a Service subscriptions," said David DeWalt, FireEye chairman of the board and chief executive officer. "Our billings performance and customer metrics point to continued strength in our business as customer preference for cloud-based and cloud-enabled solutions grows. We expect this trend to continue as we extend our MVX detection engine to public and private clouds and introduce new software-only solutions like the FireEye Security Orchestrator and virtual MVX appliances. These platform expansions create incremental opportunities to deliver FireEye detection, investigation and remediation technologies to branch offices of our existing customers and to small and mid-sized enterprises."

"Our ability to reduce the risk, mask the complexity and lower the total cost of ownership of cyber security for our customers positions us at the intersection of the powerful trends driving change in our industry. We continue to make the strategic investments in our intelligence-led threat management platform and international infrastructure necessary to take advantage of this growing opportunity. At the same time, we remain committed to accelerating our progress on the path to profitability," added DeWalt.

First Quarter 2016 Financial Results

Revenue of $168.0 million, an increase of 34 percent from the first quarter of 2015.

Billings of $186.0 million, an increase of 23 percent from the first quarter of 2015.1

GAAP operating margin of negative 93 percent, compared to negative 106 percent in the first quarter of 2015.

Non-GAAP operating margin of negative 44 percent, compared to negative 57 percent in the first quarter of 2015.1

GAAP net loss per share of $0.98, compared to a GAAP net loss per share of $0.88 in the first quarter of 2015.

Non-GAAP net loss per share of $0.47, compared to a non-GAAP net loss per share of $0.48 in the first quarter of 2015.1

Cash flow from operations of negative $22.5 million, compared to cash flow from operations of negative $3.2 million in the first quarter of 2015.

1 A reconciliation of GAAP to non-GAAP financial measures is provided in the financial statement tables included in this press release. An explanation of these measures is also included under the heading "Non-GAAP Financial Measures."

Second Quarter and Updated 2016 OutlookFireEye provides guidance based on current market conditions and expectations. For the second quarter of 2016, FireEye expects:

Total revenue in the range of $178 to $185 million.

Non-GAAP billings in the range of $200 to $215 million.

Non-GAAP operating margin of approximately negative 31 to negative 33 percent of revenue.

Non-GAAP net loss per share of $0.38 to $0.40.

Non-GAAP net loss per share for the second quarter assumes interest expense of approximately $3.0 million associated with the company's convertible senior notes, provision for income taxes of between $1.0 to $1.3 million, and weighted average shares outstanding of approximately 161 million.

For 2016, FireEye now expects:

Total revenue in the range of $780 to $810 million.

Non-GAAP billings in the range of $975 to $1,055 million.

Non-GAAP operating margin in the range of negative 22 to negative 24 percent of revenue.

Non-GAAP net loss per share of $1.20 to $1.27.

Positive cash flow from operations in the range of $70 to $80 million.

Capital expenditures on property and equipment of approximately $35 million.

Non-GAAP net loss per share for 2016 assumes interest expense of $12.1 million associated with the company's convertible senior notes, provision for income taxes of between $6.0 and $8.0 million and shares outstanding of approximately 162 million.

Guidance for non-GAAP financial measures excludes stock based compensation, amortization of intangible assets, acquisition-related expenses, restructuring charges, non-cash interest expense related to the company's convertible senior notes, and other non-recurring expenses. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis as a result of the uncertainty regarding, and the potential variability of, the amounts of stock-based compensation expense, amortization of intangible assets, and other non-recurring expenses that may be incurred in the future.

Threat Management Platform Enhanced with Security Orchestration and New Product FeaturesIn a separate press release, the company announced the launch of FireEye Security Orchestrator to act as the connected tissue both across the FireEye Platform but also for the customer's broader IT infrastructure. Along with this ability to connect disparate customer solutions, the company also announced the launch of further enhanced detection and response features including the ability to detect targeted email attacks that do not use malware, guided investigations capabilities to enable understaffed security teams to investigate incidents more effectively and high availability features that enable more organizations to deploy FireEye inline. Collectively, these enhancements enable the next generation of security operations with intelligence-led detection, automated response and unified workflows across the IT
infrastructure.

The FireEye Threat Management Platform combines advanced detection, investigation and response technologies, real-time threat intelligence and leading security expertise in products and services to reduce the business risks of cyber-attacks on the network, at the endpoint and in the cloud. Threat intelligence derived from machine learning, incident response and a global network of researchers is orchestrated across the Threat Management Platform to detect new attacks quickly and reduce response times across multiple attack vectors. Advanced analytics and forensics capabilities, backed up by human expertise, complement virtual machine-based detection in an adaptive framework that lowers complexity of security operations and total cost of ownership while enabling customers to manage risks more effectively.

Management Succession AnnouncedAdditionally, the company announced the implementation of its senior management succession plan. David DeWalt, Chairman of the Board and Chief Executive Officer of FireEye, will transition to the role of Executive Chairman of the Board effective June 15, 2016. In this role, DeWalt will remain active in the company's operations, working with the management team to increase adoption of the FireEye Threat Management Platform, with a focus on the company's multi-channel go-to-market strategies. Kevin Mandia, currently President of FireEye, will succeed DeWalt as CEO.

Additionally, Mandiant President Travis Reese will become president of FireEye, and Michael Berry will become chief operating officer in addition to his responsibilities as chief financial officer. Both appointments are effective June 15, 2016.

Conference Call InformationFireEye will host a conference call today, May 5, 2016, at 5 p.m. Eastern time (2 p.m. Pacific time) to discuss its first quarter financial results and the company's outlook for 2016. Interested parties may access the conference call by dialing 877-312-5521 (domestic) or 678-894-3048 (international). A live audio webcast of the call, as well as related multi-media content, can be accessed from the Investor Relations section of the company's website at http://investors.fireeye.com. Shortly after the conclusion of the call, an archived version of the webcast will be
available at the same website.

Forward-Looking Statements
This press release contains forward-looking statements, including statements related to future revenue, non-GAAP billings, non-GAAP operating margin, interest expense, provision for income taxes, non-GAAP net loss per share, weighted average shares outstanding, operating cash flow, and capital expenditures on property and equipment in the section entitled "Second Quarter and Updated 2016 Outlook" above, as well as statements related to FireEye's management succession plan, FireEye's path to profitability, FireEye's revenue mix and customer buying preferences, the increasing mix of product subscriptions, the continued momentum in FireEye's business and its Threat
Prevention Platform, the expected benefits resulting from future product and service announcements and enhancements to existing products and services, the expanding market for FireEye's products and services, FireEye's competitive position, FireEye's ability to expand its leadership, market share gains and, as a result of its recent acquisitions, its product and service offerings, and the capabilities of partnership offerings and jointly-developed solutions.

These forward-looking statements involve risks and uncertainties, as well as assumptions which, if they do not fully materialize or prove incorrect, could cause FireEye's results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause FireEye's results to differ materially from those expressed or implied by such forward-looking statements include customer demand and adoption of FireEye's products and services; FireEye's limited operating history, particularly as a public company; real or perceived defects, errors or vulnerabilities in
FireEye's products or services; FireEye's ability to react to trends and challenges in its business and the markets in which it operates; FireEye's ability to anticipate market needs or develop new or enhanced products and services to meet those needs; the failure to achieve expected synergies and efficiencies of operations between FireEye and its acquired companies; the ability of FireEye and its acquired companies to successfully integrate their respective market opportunities, technology, products, personnel and operations; FireEye's ability to hire and retain critical executives and key employees; FireEye's ability to attract new and retain existing customers and expand and train its sales force; the budgeting cycles, seasonal buying patterns and length of FireEye's sales cycle; risks associated with FireEye's rapid growth; the ability of FireEye and its partners to execute their strategies, plans, objectives and expected investments with respect to FireEye's partnerships; and general market, political, economic, and business conditions, as well as those risks and uncertainties included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in FireEye's Form 10-K filed with the Securities and Exchange Commission on February 26, 2016, which should be read in conjunction with these financial results and is available on the Investor Relations section of FireEye's website at investors.fireeye.com and on the SEC website at www.sec.gov.

All forward-looking statements in this press release are based on information available to the company as of the date hereof, and FireEye does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made. Any future product, service, feature, or related specification that may be referenced in this release is for informational purposes only and is not a commitment to deliver any offering, technology or enhancement. FireEye reserves the right to modify future product or service plans at any time.

Non-GAAP Financial MeasuresIn this release FireEye has provided financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP financial measures are not based on any standardized methodology and are not necessarily comparable to similar measures used by other companies. The company uses these non-GAAP financial measures internally in analyzing its financial results and believes that the use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends, and in comparing the company's financial results with other companies in its industry, many of which present similar non-GAAP financial measures.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial information prepared in accordance with GAAP, and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. A reconciliation of the company's non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

Billings. FireEye defines billings as revenue recognized plus the change in deferred revenue from the beginning to the end of the period. The company considers billings to be a useful metric for management and investors because billings drive deferred revenue balances, which are an important indicator of the health and visibility of the company's business. Revenue recognized from deferred revenue represents a significant percentage of quarterly revenue. There are a number of limitations related to the use of billings versus revenue calculated in accordance with GAAP. First, billings include amounts that have not yet been recognized as revenue. Second, FireEye's calculation of billings may be different from other companies in its
industry, some of which may not use billings, may calculate billings differently, may have different billing frequencies, or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of billings as a comparative measure. FireEye compensates for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with revenue calculated in accordance with GAAP.

Non-GAAP net loss and net loss per share in the first quarter of 2016 excluded stock-based compensation expense, amortization of intangible assets, non-cash interest expense related to the convertible senior notes issued in June 2015, acquisition related expenses, and restructuring charges. Non-GAAP net loss and net loss per share for the first quarter of 2015 excluded stock-based compensation expense, and amortization of intangible assets.

FireEye considers these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of stock-based compensation expense, amortization of intangible assets, acquisition related expenses, non-cash interest expense related to the company's convertible senior notes, restructuring charges, and other non-recurring and discrete items so that management and investors can compare the company's core business operating results, over multiple periods.

There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. First, these non-GAAP financial measures exclude stock-based compensation expense. Stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in the company's business. Stock-based compensation is an important part of FireEye employees' overall compensation. Second, the components of the costs that FireEye excludes in its calculation of these non-GAAP financial measures, including not only stock-based compensation but also non-recurring items such as acquisition related expenses, amortization of intangible assets, non-cash interest expense related to the company's convertible
senior notes, restructuring charges, and discrete tax benefits, may differ from the components excluded by peer companies when they report their non-GAAP results of operations. FireEye compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures and evaluating non-GAAP financial measures together with their nearest GAAP equivalents.

About FireEye, Inc.FireEye has invented a purpose-built, virtual machine-based security platform that provides real-time threat protection to enterprises and governments worldwide against the next generation of cyber attacks. These highly sophisticated cyber attacks easily circumvent traditional signature-based defenses, such as next-generation firewalls, IPS, anti-virus, and gateways. The FireEye Threat Prevention Platform provides real-time, dynamic threat protection without the use of signatures to protect an organization across the primary threat vectors and across the different stages of an attack life cycle. The core of the FireEye platform is a virtual execution engine, complemented by dynamic threat intelligence, to identify and block cyber attacks in real time. FireEye has over 4,700 customers across 67 countries, including more than 730 of the Forbes Global 2000.